Room Pricing: Using Relevant Data and Machine Learning for Precise Pricing

By Gino Engels Co-Founder, OTA Insight | November 04, 2018

Emerging technology is always a hot topic. It's gone from Big Data to data science, artificial intelligence, machine learning, predictive analytics, and most recently, blockchain. Keeping up with these technologies is never easy, especially for the hotelier focused on running a strong, profitable operation with a memorable guest experience.

As a third-party partner to the industry, we pride ourselves on being shepherds across this emerging technology landscape. There are new channels emerging regularly, such as alternative accommodations and niche booking engines; hoteliers are bombarded with new places to distribute their content.

And with each new channel comes an additional burden: ensuring parity and competitiveness of room pricing across channels.

For us at OTA Insight, we believe that Big Data is an overused-but-descriptive term that has helped us all understand the latent value within large datasets. The evolution of machine learning, which empowers decision-making to happen in real-time without further human input, now means that this value can be rapidly unlocked in real-time.

This evolution to real-time has created a world in which room rates are adjusted in seconds, rather than days. Dynamic pricing allows hotels to change prices rapidly in response to changing market demand.

While this maximizes profitability, it also dramatically increases complexity. It's not unheard of for there to be multiple price changes in a given hour. Consider the variables at play: seasonality, local events and conferences, room types, amenities, variations of packages (such as breakfast included)...the rate permutations across hotels in a given market can easily run into the millions.

Choose a Social Network!

The social network you are looking for is not available.

Close

Hotel Newswire Headlines Feed  

Sam Cicero
Paul Feeney
David Muller
Roberta Nedry
Marilyn Healey
Lonnie Giamela
Rani Bhattacharyya
Bonnie Knutson
Doug Luciani
Richard Takach, Jr.
Coming up in June 2019...

Sales & Marketing: Selling Experiences

There are innumerable strategies that Hotel Sales and Marketing Directors employ to find, engage and entice guests to their property, and those strategies are constantly evolving. A breakthrough technology, pioneering platform, or even a simple algorithm update can cause new trends to emerge and upend the best laid plans. Sales and marketing departments must remain agile so they can adapt to the ever changing digital landscape. As an example, the popularity of virtual reality is on the rise, as 360 interactive technologies become more mainstream. Chatbots and artificial intelligence are also poised to become the next big things, as they take guest personalization to a whole new level. But one sales and marketing trend that is currently resulting in major benefits for hotels is experiential marketing - the effort to deliver an experience to potential guests. Mainly this is accomplished through the creative use of video and images, and by utilizing what has become known as User Generated Content. By sharing actual personal content (videos and pictures) from satisfied guests who have experienced the delights of a property, prospective guests can more easily imagine themselves having the same experience. Similarly, Hotel Generated Content is equally important. Hotels are more than beds and effective video presentations can tell a compelling story - a story about what makes the hotel appealing and unique. A video walk-through of rooms is essential, as are video tours in different areas of a hotel. The goal is to highlight what makes the property exceptional, but also to show real people having real fun - an experience that prospective guests can have too. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.